We are living in unsettled world that is changing by day. Internet made International business more open as ever before. Different currencies are used to pay for business transactions, US dollar, Euro, Yen, Rubles, Yuan ... you name it and it's out there. Something called International currency basket is used for millions of every day business transactions. Sure enough US dollar is a leader of the pack and it's being like that for last 50-60 years.
Any trade and especially international one needs stable costs and currencies in order to function normally. What would be the most stable value that EVERYBODY could agree on? Everybody means literally everybody, anywhere in the world, any country, any region!
You guessed it right, it's a GOLD. Single most valued, most stable, most appreciated, most widely accepted stored expression of value mankind ever had! Truly gold is forever and nothing is to change that.
Let's say company in Italy wants to sell some machinery to company in China. Naturally Italians would like to get EUROS for that purchase. Dollars would be their second choice. Chinese have a different idea. They prefer YUAN. As for USD that is out of question. Chinese Government is waging currency war against USD. They are actively dumping USD and US securities so forget USD in this transaction.
Back to sellers and buyers. At least one side will suffer monetary damages by buying foreign currency or converting it to home currency. In case they agree on USD transaction both of them will lose money. Chinese buyer will have to buy USD and Italian seller will have to sell USD in order to get EUROS. Not only they will have to buy and sell USD but suffer unpredictability of value doing so. Plain and simple.
In this case both seller and buyer would open account with SCCS. Buyer would buy amount of gold and get it loaded into their SmartGold Club Business Club card. Instead of agreeing on various currencies they would simply agree on cost in weight of fine gold! No other criteria or calculation is required.
Again we are talking about 99.99 fine gold. Remember, that is basic Earth element and is the same everywhere in the world. Best part is value of it is almost the same everywhere in the world. 100 grams of gold is 4400 USD or about 3800 EURO or same in YUAN or RUBLES or PESOS ... well you got the point. Gold is tangible matter with it's own specific properties. Not a piece of paper, not a meaningless file, not a money where paper worths more than actual denomination. It's nice, shiny, heavy gold metal bar. It will never rust, disappear, deteriorate, go out of fashion or lose it's properties!
Again back to our buyers. SCCS would purchase amount of gold and store it into secure storage in one of the few secure locations around the world. Germany, Canada, Hong Kong, Cayman Islands, Singapore, Zurich. Out of reach from greedy Governments but still fully accessible for any transactions. Using our secure system and escrow features with minimal fees value would be transferred to Italian sellers. Done deal!
After transaction is done what will happen next? Chinese buyer will get their machinery and Italian company will get nice gold bars in secure storage. With no risk for both parties that they will lose value due to dramatic changes in currency. Actually Italian holder is most likely to profit from increased value of gold. Most likely than not they will want to hold onto that fortune. Sell portions only when needed and be in perfect position to pay their suppliers with gold rather than common currency.
Is this far fetched? Not at all. Russia, China and India are know to be gold hoarding countries. Not only that but China very wisely encourages citizens to buy gold and hold it. They are encouraging people to increase personal wealth thus a wealth of overall nation. On opposite side they are discouraging people to use and have Bitcoin. They already started to regulate it and they may outlaw it. Chinese Government is anything but stupid. They understand that BTC is almost like Ponzi scheme and can crumble down like house of cards literally overnight. In such event Chinese Bitcoin hoarders will lose untold Millions. Read HERE what we think about Bitcoin. In opposite situation where gold and silver dramatically increase in value Chinese citizens will enjoy increase of their wealth and every Government in the world would want that for own population.
Here is a another kicker! In case of big currency turmoils those countries may ask to get paid in gold for their oil, energy, manufactured goods, food, medicine and just about anything. With own piles of gold they could rely on ultimate value. Others will gladly accept payments in physical gold. Nations with stockpiles of gold will sure do well in such situations. The other ones not so much. Needless to say in such environment gold and silver will skyrocket in value. Owners or physical gold will profit handsomely just by sitting on gold. It will worth multiples of what it costs today.
Our smart card system makes hoarding gold possible. Not only that but it makes system very practical, secure and easy to use. Actual gold most likely would never move anywhere from secure storage box. Ownership only would.